Blue Nile to Open Standalone ‘Showcase’ Store in US

(IDEX Online News) – Online jewelry retailer Blue Nile plans to open its first standalone showcase store. Blue Nile CEO Harvey Kanter announced the move in a conference call following the release of the company’s financial results yesterday (Tuesday).

“This web room experience will allow customers who may be initially hesitant to buy online to see and feel rings, speak with our noncommissioned diamond jewelry consultants and even purchase online using an in-store tablet all while keeping our overhead costs low and maintaining our superior price advantage,” he said.

The company recently tested this sales strategy in two Nordstrom stores.

While he did not announce where the showcase store will be located, Kanter said it would be situated in one of the top malls and with one of the world’s leading developers.

He also added some details about the company’s performance in the past 30 months since he laid out his plan to reaccelerate growth, calling it “one of the greatest growth periods in Blue Nile’s history.”

In that time, he said, the company has added two offices in China, nearly tripled its supply of loose diamonds, sold an additional 150,000 engagement rings and surpassed one million Facebook fans.

While acknowledging that this quarter’s results were below expectations, citing the general slowdown in the industry, Kanter said Blue Nile sold more engagement rings during the quarter than any other in the company’s history.

Kanter also focused on the company’s mobile and communication strategy. A majority of Blue Nile’s traffic is being driven by mobile devices.

“Mobile is a critical long-term technology investment that helps us show up in the place future customers want to shop and is an experience shared by almost none of our competitors. Already more than half of our traffic comes from mobile device, and the improved experience is increasing conversion. In fact, click through and average revenue per visit is up markedly over Q4 2013,” he said.

And it’s not just lower-priced diamonds being sold via mobile. The company sold a $396,000 item in the fourth quarter on a mobile phone. “Clearly consumers are becoming more comfortable buying from mobile devices, and a reliable, easy mobile experience is a critical element in building trust and bringing more consumers online,” he said.

As part of its growth strategy, Blue Nile is focusing on China, which is its largest market outside the US, and which grew 37 percent for the year.

Kanter also announced that Blue Nile will add another jewelry line in the second quarter.